Cost and Value Management in Projects, 2nd Edition

Cost and Value Management in Projects, 2nd Edition

by Ray R. Venkataraman, Jeffrey K. Pinto
Released March 2023
Publisher(s): Wiley
ISBN: 9781119933540

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Book description

Cost and Value Management in Projects

Project manager's guide to achieving cost efficiency and value optimization—thoroughly updated with new cases, examples, and problem sets

The newly revised and updated Second Edition of Cost and Value Management in Projects provides project managers with a thorough understanding of the various dimensions of cost and value in projects, along with the factors that impact them and the managerial approaches for achieving cost efficiency and value optimization. Whereas most cost management books discuss the topic from a tactical perspective, such as through the use of simple budgeting or Earned Value Analysis, this Second Edition addresses cost from a strategic perspective, examining project management decision areas that have the potential to enhance value and providing an integrated framework for managing cost.

The Second Edition includes updates to key topic areas such as project benefits realization, updated end-of-chapter exercises such as discussion questions and problem sets, updated case studies, and new spreadsheet analytic techniques and examples.

Written by two highly qualified authors with significant experience in the field, Cost and Value Management in Projects includes information on:

  • Value management through value planning, engineering, and analysis from the perspective of projects, and best practices on how to avoid common pitfalls in managing cost and value
  • Organization strategy and project selection, organization structure and culture, project definition (and contracts), and estimating project times and cost
  • Developing project plans and schedules, managing risk, scheduling resources and cost, reducing project duration, leadership, performance measurement, and project closure
  • Attainment of value in complex environmental settings and benefits of effective project management

Cost and Value Management in Projects is an essential resource on the subject for stakeholders at all corporate and government levels, including executives measuring performance, middle level corporate managers, project and team managers, engineers, project team members, and business consultants, along with students in related programs of study.

Table of contents

  1. Cover
  2. Title Page
  3. Copyright
  4. About the Authors
  5. Introduction to the Second Edition
  6. Chapter 1: Introduction to the Challenge of Cost and Value Management in Projects
    1. 1.1 IMPORTANCE OF COST AND VALUE MANAGEMENT IN PROJECTS
    2. 1.2 KEYS TO EFFECTIVE PROJECT COST MANAGEMENT
    3. 1.3 ESSENTIAL FEATURES OF PROJECT VALUE MANAGEMENT
    4. 1.4 ORGANIZATION OF THE BOOK
    5. CHAPTER SUMMARY
    6. REFERENCES
  7. Chapter 2: Project Needs Assessment, Concept Development, and Planning
    1. 2.1 NEEDS IDENTIFICATION
    2. 2.2 CONCEPTUAL DEVELOPMENT
    3. 2.3 PROJECT FEASIBILITY
    4. 2.4 THE STATEMENT OF WORK
    5. 2.5 PROJECT PLANNING
    6. 2.6 PROJECT SCOPE DEFINITION
    7. 2.7 WORK BREAKDOWN STRUCTURE
    8. CHAPTER SUMMARY
    9. DISCUSSION AND REVIEW QUESTIONS
    10. REFERENCES
  8. Chapter 3: Cost Estimation
    1. 3.1 IMPORTANCE OF COST ESTIMATION
    2. 3.2 PROBLEMS OF COST ESTIMATION
    3. 3.3 SOURCES AND CATEGORIES OF PROJECT COSTS
    4. 3.4 COST ESTIMATING METHODS
    5. 3.5 COST ESTIMATION PROCESS
    6. 3.6 ALLOWANCES FOR CONTINGENCIES IN COST ESTIMATION
    7. 3.7 THE USE OF LEARNING CURVES IN COST ESTIMATION
    8. CHAPTER SUMMARY
    9. DISCUSSION AND REVIEW QUESTIONS
    10. REFERENCES
  9. Chapter 3a: Appendix to Chapter 3: Forecasting Methods for Cost and Value Management
    1. 3A.1 CATEGORIES OF FORECASTING IN PROJECT MANAGEMENT
    2. 3A.2 FORECASTING METHODS FOR PROJECTS
    3. 3A.3 TIME SERIES ANALYSIS
    4. 3A.4 LINEAR REGRESSION ANALYSIS
    5. 3A.4 FORECASTING THE PROJECT END CONDITIONS
    6. 3A.5 S-CURVE FORECASTING
    7. 3A.6 TECHNOLOGICAL FORECASTING
    8. CHAPTER SUMMARY
    9. DISCUSSION AND REVIEW QUESTIONS
    10. REFERENCES
  10. Chapter 4: Project Budgeting
    1. 4.1 ISSUES IN PROJECT BUDGETING
    2. 4.2 DEVELOPING A PROJECT BUDGET
    3. 4.3 APPROACHES TO DEVELOPING A PROJECT BUDGET
    4. 4.4 ACTIVITY-BASED COSTING
    5. 4.5 PROGRAM BUDGETING
    6. 4.6 DEVELOPING A PROJECT CONTINGENCY BUDGET
    7. 4.7 ISSUES IN BUDGET DEVELOPMENT
    8. 4.8 CRASHING THE PROJECT: BUDGET EFFECTS
    9. CHAPTER SUMMARY
    10. DISCUSSION AND REVIEW QUESTIONS
    11. REFERENCES
  11. Chapter 5: Project Cost Control
    1. 5.1 OVERVIEW OF THE PROJECT EVALUATION AND CONTROL SYSTEM
    2. 5.2 INTEGRATING COST AND TIME IN MONITORING PROJECT PERFORMANCE: THE S-CURVE
    3. 5.3 EARNED VALUE MANAGEMENT
    4. 5.4 EARNED VALUE MANAGEMENT MODEL
    5. 5.5 FUNDAMENTALS OF EARNED VALUE
    6. 5.6 EVM TERMINOLOGY
    7. 5.7 RELEVANCY OF EARNED VALUE MANAGEMENT
    8. 5.8 CONDUCTING AN EARNED VALUE ANALYSIS
    9. 5.9 PERFORMING AN EARNED VALUE ASSESSMENT
    10. 5.10 MANAGING A PORTFOLIO OF PROJECTS WITH EARNED VALUE MANAGEMENT
    11. 5.11 IMPORTANT ISSUES IN THE EFFECTIVE USE OF EARNED VALUE MANAGEMENT
    12. 5.12 BENEFITS OF EVM
    13. 5.13 EVM USING MICROSOFT PROJECT
    14. CHAPTER SUMMARY
    15. DISCUSSION AND REVIEW QUESTIONS
    16. REFERENCES
  12. Chapter 6: Cash Flow Management
    1. 6.1 THE CONCEPT OF CASH FLOW
    2. 6.2 CASH FLOW AND THE WORTH OF PROJECTS
    3. 6.3 PAYMENT ARRANGEMENTS
    4. CHAPTER SUMMARY
    5. DISCUSSION AND REVIEW QUESTIONS
    6. REFERENCES
  13. Chapter 7: Financial Management in Projects
    1. 7.1 PROJECT FINANCIAL MANAGEMENT
    2. 7.2 PROJECT ACCOUNTING
    3. 7.3 FINANCING OF PROJECTS VERSUS PROJECT FINANCE
    4. 7.4 PRINCIPLES OF FINANCING PROJECTS
    5. 7.5 TYPES AND SOURCES OF FINANCE
    6. 7.6 SOURCES OF FINANCE
    7. 7.7 COST OF FINANCING
    8. 7.8 PROJECT FINANCE
    9. 7.9 THE PROCESS OF PROJECT FINANCIAL MANAGEMENT
    10. CHAPTER SUMMARY
    11. DISCUSSION AND REVIEW QUESTIONS
    12. REFERENCES
  14. Chapter 8: Value Management
    1. 8.1 CONCEPT OF VALUE
    2. 8.2 DIMENSIONS AND MEASURES OF VALUE
    3. 8.3 OVERVIEW OF VALUE MANAGEMENT
    4. 8.4 VALUE MANAGEMENT TERMS
    5. 8.5 NEED FOR VALUE MANAGEMENT IN PROJECTS
    6. 8.6 THE VALUE MANAGEMENT APPROACH
    7. 8.7 THE VM PROCESS
    8. 8.8 BENEFITS OF VALUE MANAGEMENT
    9. 8.9 OTHER VM REQUIREMENTS
    10. 8.10 VALUE MANAGEMENT REVIEWS
    11. 8.11 RELATIONSHIP BETWEEN PROJECT VALUE AND RISK
    12. 8.12 VALUE MANAGEMENT AS AN AID TO RISK ASSESSMENT
    13. 8.13 AN EXAMPLE OF HOW VM AND RISK MANAGEMENT INTERRELATE
    14. 8.14 PROJECT BENEFITS MANAGEMENT
    15. CHAPTER SUMMARY
    16. DISCUSSION AND REVIEW QUESTIONS
    17. REFERENCES
    18. NOTE
  15. Chapter 9: Change Control and Configuration Management
    1. 9.1 CAUSES OF CHANGES
    2. 9.2 INFLUENCE OF CHANGES
    3. 9.3 CONFIGURATION MANAGEMENT
    4. 9.4 CONFIGURATION MANAGEMENT STANDARDS
    5. 9.5 THE CM PROCESS
    6. 9.6 ROLE AND BENEFITS OF CONFIGURATION MANAGEMENT IN PROJECTS
    7. 9.7 CONTROL OF CHANGES
    8. 9.8 CHANGE CONTROL PROCEDURE AND CONFIGURATION CONTROL
    9. 9.9 RESPONSIBILITY FOR THE CONTROL OF CHANGES
    10. 9.10 CRISIS MANAGEMENT
    11. 9.11 AN EXAMPLE OF CONFIGURATION MANAGEMENT
    12. CHAPTER SUMMARY
    13. DISCUSSION AND REVIEW QUESTIONS
    14. REFERENCES
  16. Chapter 10: Supply Chain Management
    1. 10.1 WHAT IS SUPPLY CHAIN MANAGEMENT?
    2. 10.2 THE NEED TO MANAGE SUPPLY CHAINS
    3. 10.3 SCM BENEFITS
    4. 10.4 CRITICAL AREAS OF SCM
    5. 10.5 SCM ISSUES IN PROJECT MANAGEMENT
    6. 10.6 VALUE DRIVERS IN PROJECT SUPPLY CHAIN MANAGEMENT
    7. 10.7 OPTIMIZING VALUE IN PROJECT SUPPLY CHAINS
    8. 10.8 PROJECT SUPPLY CHAIN PROCESS FRAMEWORK
    9. 10.9 INTEGRATING THE SUPPLY CHAIN
    10. 10.10 PERFORMANCE METRICS IN PROJECT SUPPLY CHAIN MANAGEMENT
    11. 10.11 PROJECT SUPPLY CHAIN METRICS AND THE SUPPLY CHAIN OPERATIONS REFERENCE (SCOR) MODEL
    12. 10.12 FUTURE ISSUES IN PROJECT SUPPLY CHAIN MANAGEMENT
    13. CHAPTER SUMMARY
    14. DISCUSSION AND REVIEW QUESTIONS
    15. REFERENCES
  17. Chapter 11: Quality Management in Projects
    1. 11.1 DEFINITION OF QUALITY IN PROJECTS
    2. 11.2 ELEMENTS OF PROJECT QUALITY
    3. 11.3 TOTAL QUALITY MANAGEMENT IN PROJECTS
    4. 11.4 ROOT CAUSE ANALYSIS
    5. 11.5 QUALITY MANAGEMENT SYSTEM
    6. 11.6 QUALITY MANAGEMENT METHODS FOR A PROJECT ORGANIZATION
    7. 11.7 QUALITY STANDARDS FOR PROJECTS
    8. CHAPTER SUMMARY
    9. DISCUSSION AND REVIEW QUESTIONS
    10. REFERENCES
  18. Chapter 12: Integrating Cost and Value in Projects
    1. 12.1 THE PROJECT VALUE CHAIN
    2. 12.2 PROJECT VALUE CHAIN ANALYSIS
    3. 12.3 SOURCES AND STRATEGIES FOR INTEGRATING COST AND VALUE IN PROJECTS
    4. 12.4 INTEGRATED VALUE AND RISK MANAGEMENT
    5. 12.5 THE PROJECT COST AND VALUE INTEGRATION PROCESS
    6. CHAPTER SUMMARY
    7. DISCUSSION AND REVIEW QUESTIONS
    8. REFERENCES
  19. Index
  20. End User License Agreement

Product information

  • Title: Cost and Value Management in Projects, 2nd Edition
  • Author(s): Ray R. Venkataraman, Jeffrey K. Pinto
  • Release date: March 2023
  • Publisher(s): Wiley
  • ISBN: 9781119933540